Project of PEL

STUDY OF MARKETING SYSTEM
Of
Pak Electron Limited
Submitted By:
Group (D)
MBA (A)
M Naveed Aslam
05
Madeeha Razzaq
85
Imran Naseem
40
Tariq Mahmmd
!!
Sadia Riaz
"#
Pak Electron Limited Change your Life
$zma %halid
!&
Submitted T:

Dedication:
We dedicate our project to COMSATS
And all the students of the university.
Dominator Group
(D)
2
ACKN!LEDGE"EN#:
A million thanks to the Almighty, without whose support, there can be no work. I
would also like to take this opportunity to extend my appreciation and gratitude to
Mr.Zeeshan Ullah, without their counseling and parallel skills I would have never
been able to prepare this report. e owe special thanks to !"# company $or
assistance, %evelopment ork and data collecting.
&inally we owe many thanks $or the participation o$ all group members and their
coordination to accomplish the task.
Dominator Group
(D)
'
#A$LE % CN#EN#&:
EXECUTIVE SUMMARY '(
VISION 08
MISSION STATEMENT 09
HISTORY OF PEL 10
PEL COMPANY STRUCTURE: 11
SITUATION ANALYSIS:
Market Research 13
Porters Model 17
SWOT Analysis 20
OBJECTIVES OF PEL 26
STRATEGIC MARKETING PLANNING:
BC Matri! 27
Strate"ies o# P$% 2&
COMPATITIVE ADVANTAGE 0
MARKET SEGMENTATION 1
TARGET MARKET 2
POSITIONING
Dominator Group
(D)
(
MARKETING MIX:
PRODUCT MIX
Prod'ct %ines o# P$% 3(
)eat'res o# *rod'ct line +0
Prod'ct li#e cycle +2
PRICING !!
PROMOTION:
Pro,otional Strate"ies o# P$% +7
Methods o# *ro,otion +7
Ad-ertisin" +.
PLACEMENT "1
COMPETITION:
/irect co,*etitor o# P$% (+
0ndirect co,*etitor o# P$% ((
COMPARISON BET#EEN PEL $ DA#LANCE "6
GRO#TH RATE OF PEL "%
&UALITY A#ARD "8
FUTURE OUTLOOK "9
Dominator Group
(D)
)
E)EC*#+,E &*""A-.:
!"# and !"# appliances $all under the *aigol +roup o$ ,ompanies. !"# has long
been known in !akistan as a company that produces -uality products. !"# has created
a brand loyalty among its users and the company credits that to its high -uality and
vast product range. !"# has been continuously adding new products to its range. As a
result, !"# has registered a signi$icant increase in its sales volume, during the last ten
years.
.ne sector in !akistan that has grown considerably in the past is the /ome Appliances
%ivision. 0here is great competition in this sector and !"# has survived this
competition with great $lair. !"# en1oys good reputation in the market $or its home
appliances.
!"# is in a growth phase in this sector. 0his sector carries a lot o$ potential and !"#
can capitali2e on this $act.
My stay at !"# was very bene$icial due to the $act that I got the opportunity to learn
the trends in the market in this sector. 0he company takes it as a liability to take care
o$ its employees. 0he corporate culture at !"# was very healthy and induced work
habits. 0his atmosphere helped me in building sel$3con$idence and belie$. At !"# I
had an opportunity to deal directly with the customers and $ind out their demands and
problems associated with !"#. I got to know about the trend in the industry and also
conducted a research through which I got a better understanding o$ the consumer
buying behavior.
I also got a chance to improve my decision3making skills. &urther more, working at
!"# also helped me in becoming a better time3managed person. I got to know the
importance o$ teamwork at the work place.
In the end, all the experience that I have gained during my stay at !"# has helped me
a lot in becoming a better organi2ed person and will de$initely help me in becoming
an even better person in the $uture. I can say this with out doubt that the values that I
have gained while working at !"# will be applied to wherever I go to work in the
$uture/
Dominator Group
(D)
4
Dominator Group
(D)
5
60o excel in providing
engineering goods and services
through continuous improvement7
Dominator Group
(D)
8
#o pro0ide 1uality product2 3 2er0ice2 to the
complete 2ati2faction of our cu2tomer2 and ma4imi5e
return2 for all 2takeholder2 through optimal u2e of
re2ource2/
#o focu2 on per2onal de0elopment of our
employee2 to meet future challenge2/
#o promote good go0ernance6 corporate
0alue2 and a 2afe 7orking en0ironment 7ith a 2trong
2en2e of 2ocial re2pon2i8ility
Dominator Group
(D)
9
!ak "lectron #td. :!"#; was established in <9)4 with the technical collaboration o$
M=* A"+ +ermany and is the oldest composite electrical e-uipment manu$acturing
unit in !akistan.
+n cto8er 9:;< the company was taken over by the &A+GL G-*P, which is
one o$ the leading industrial and commercial groups o$ !akistan. 0he products
manu$actured by !"# have always been o$ a high standard and the name 6!"# is
synonymous with -uality all over !akistan.7 !"#, since its inception, has been acting
as an institution working $or the advancement and development o$ engineering and
modern technology in !akistan
*ince its inception, the company has been working $or the advancement and
development o$ engineering know3how in !akistan. 0he company has produced
hundreds o$ engineers and skilled workers and technicians through its apprenticeship
schemes > training programs.
!"# has been continuously adding new products to its range. As a result, !"# has
registered a signi$icant increase in its sales volume, during the last ten years
+n 9:;<6 the *aigol +roup o$ ,ompanies purchased ma1or shares o$ !ak "lectron
#imited. At that 1uncture, the company was only manu$acturing trans$ormers and
switchgears. ith the *aigols in management, !"# started expanding its product
range by entering into Air ,onditioner manu$acturing.
+n 9:<9, !"# window type air conditioners were introduced in technical collaboration
with +eneral ,orporation o$ ?apan.
+n 9:<(=<;, the company started manu$acturing o$ re$rigerators in technical
collaboration with M=s IA@3*I#0A# o$ Italy.
+n 9:<;, !"# deep $ree2ers were also introduced in technical collaboration with M=s
Ariston o$ Italy.
Dominator Group
(D)
<A
+n >''(, the ,ompany has started manu$acturing o$ split type air conditioners o$
various capacities as the customer choice has shi$ted $rom window type to split type.
0he product has been well received in the market. 0his encourages the company to
multiply its production in the coming year.
0oday, !"# has become a household name. Its products are not only in great
demand in the local market but the ,ompany has started exporting its appliances
division products.
!ak "lectron #imited :!A"# or !"#; is the pioneer manu$acturer o$ electrical goods
in !akistan. 0he company is listed on all the three stock exchanges o$ !akistan. Its
principal activity is manu$acturing and sale o$ electrical capital goods and domestic
appliances.But now, !"# is operating a single business entity without any
division.
LA?-E %AC#-.:
In #ahore &actory, @e$rigerators, 0rans$ormers, "nergy Meters, and *witchgears
are produced. !reviously, indow A, and %eep $ree2ers were also produced in
#ahore &actory but !"# -uit these operations. /owever, !"# has restarted the
production o$ %eep $ree2ers once again at #ahore $actory.
0here are $ollowing departments in the &actory o$ !"#C
!roduction department.
@esearch and development.
Duality control department.
/uman resources department.
Marketing department.
&inance department.
Dominator Group
(D)
<<
0he company comprises two divisionsC
Appliances %ivision.
!ower %ivision.
APPL+ANCE& D+,+&+N C
!"#Es Appliances %ivision is the $lag carrier o$ the &aigol Group involved in home
appliances manu$acturing.
Air conditioners.
@e$rigerator.
%eep $ree2ers.
Microwave oven.
ashing machine.
+enerators.
P!E- D+,+&+N:
!"# !ower %ivision manu$actures energy meters,
0rans$ormers
*witchgears
Fiosks
,ompact stations
*hunt capacitor banks
"nergy meters
+enerators
All these electrical goods are manu$actured under strict -uality control and in
accordance with international standards.!"# is one o$ the ma1or electrical e-uipment
suppliers to ater and !ower %evelopment Authority :A!%A; and Farachi
"lectrical *upply ,orporation :F"*,;, which are the largest power utilities in
Dominator Group
(D)
<2
!akistan..ver the years, !"# electrical e-uipment has had been used in numerous
power pro1ects o$ national importance within !akistan.
In spite o$ sti$$ competition $rom emerging local and multinational brands, !"#
+roupGs appliances and electrical e-uipments have remained in the spotlight due to
constant innovation. *trategic partnership with multinationals o$ repute have enabled
the !"# +roup to incorporate new technologies into existing product ranges, thus
giving the !akistani market access to innovative, a$$ordable and -uality products.
"A-KE#+NG -E&EA-C?:
It is a set o$ activities which are per$ormed $or the purpose o$ getting customer
knowledge in the $orm o$ &eedback to provide them ultimate satis$action through
improved and desired products. !"# is taking keen interest toward marketing research
activates to know about customer desires. &or this purpose, company is taking
services $rom several research agencies. M@# :market research link; is one o$ these
agencies providing their services to !"# and ensuring to provide authenticated results
in the $orm o$ &eedback. !"# do not compromise on -uality and customer satis$action
so the company provides <AAH importance to the &eedback generated through
research agencies. hile conducting research $or !"#, M@# also look $orward to
collect data about customer awareness towards new launched product.
%+ND+NG& AND ANAL.&+&:
Area
55 17.9 1.! 1.!
" 9.1 9.! "7.7
19 #." #.! !$.%
" 9.1 9.! $!.!
7% "".7 "!.! ##.7
1 5. #.% 7".7
!5 11.$ 11.7 $.!
" 9.1 9.! 9!.7
19 #." #.! 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
&efense
Cavalry 'round
'ul(er)
*i(erty
A(id Mar+et
Alla, -.(al To/n
Main Mar+et
Moon Mar+et
*in+ 0oad Model To/n
Total
1alid
Syste, Missin)
Total
2re.uency 3ercent 1alid 3ercent
Cu,ulative
3ercent
Dominator Group
(D)
<'
Brand Preference (Dawlance)
" .# .7 .7
1% !." !.! $.%
$5 1$.# 15.% 19.%
7! "!.7 "$.! $!.!
17% 55." 5#.7 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
1
"
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Brand Preference (PEL)
! 1.% 1.% 1.%
!% 9.7 1%.% 11.%
9 ".9 "9.7 $%.7
1"1 !9.! $%.! 1.%
57 1.5 19.% 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
1
"
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Income
"" 7.1 7.! 7.!
$7 15.! 15.7 "!.%
59 19." 19.7 $".7
1"5 $%.# $1.7 $.!
$7 15.! 15.7 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
4elo/15%%%
15%%%5"5%%%
"5%%%%5!5%%%
!5%%%%5$%%%%
upto5%%%%
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
$-AND P-E%E-ENCE #!A-D D+%%E-EN# $-AND&
Dominator Group
(D)
<(
Brand Preference (Others)
1%% !".5 !!.! !!.!
7! "!.7 "$.! 57.7
59 19." 19.7 77.!
"7 . 9.% #.!
$1 1!.! 1!.7 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
1
"
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Brand Preference (Haier)
15# 5%.# 5".% 5".%
1"$ $%.! $1.! 9!.!
".# ".7 9#.%
5 1.# 1.7 97.7
7 ".! ".! 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
1
"
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
!?+C? $-AND D+D .* AL-EAD. ?A,E@
Brand Already Have.
1%$ !!. !$.7 !$.7
5$ 17.5 1.% 5".7
9" "9.9 !%.7 !.!
7 ".! ".! 5.7
$! 1$.% 1$.! 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
&a/lance
Waves
36*
7aier
Others
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Dominator Group
(D)
<)
!?. D+D .* $*. +#@
Brand Purchase Due to (uality)
" .# .7 .7
$" 1!.# 1$.% 1$.7
"5# !.1 5.! 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Brand Purchase Due to (Brand !ame)
"1 #. 7.% 7.%
59 19." 19.7 "#.7
""% 71.$ 7!.! 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Brand Purchase Due to ("eatures)
" .# .7 .7
"7 . 9.% 9.7
#5 "1.1 "1.7 !1.!
"%# ##.9 #.7 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
"
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Dominator Group
(D)
<4
Brand Purchase Due to (#e$"rnds)
1# 5." 5.! 5.!
$9 15.9 1#.! "1.7
15" $9.$ 5%.7 7".!
1 "#.! "7.% 99.!
" .# .7 1%%.%
!%% 97.$ 1%%.%
".#
!% 1%%.%
1
"
!
$
5
Total
1alid
Syste, Missin)
Total
Cu,ulative
3ercent
Dominator Group
(D)
Da7alance
#hreat of &u82titute
$argaining
Po7er f
&upplier2
NE! EN#-AN#&
$argaining
Po7er f
$uyer2
<5
0he $inal out come o$ the research was that !"# has lost its competitive edge
when it comes to other brands. I shall now discuss why is this so in the light o$ the
!orterEs &ive &orces Model. 0hese $ive $orces are $ollowing.
0he risk o$ new entry by potential competitors
@ivalry among established $irms
0he bargaining power o$ the buyer
0he bargaining power o$ the supplier
0he threat o$ substitute products
DIRECT COMPETITORS
0he direct competitors o$ !"# are %awlance, aves, #+, and /aier etc. 0he
%awlance is market leader in the re$rigerator and !"# is still on second number. But
in window room air conditioner :@A,; the !"# is market leader
REFRIGERATORS'
0otal market sale o$ re$rigerator in 2AA' was '45AAA units. #ast year sale was 2)49AA
units. 0hese $igures show 'AH market growth. But the average growth was <'H to
<5H. And the !"# sale growth is 5AH, which is a great achievement.
%awlance is a market leader in re$rigerator with (4H share.
!"# has '2H market share.
aves has <<H market share.
<<H shares are others.
#INDO# AC'
!"# is a market leader with a market share o$ about 4AH in local manu$acturing
industry. And overall has ')H market shares $or this product.
#+ has about '2H market share and stands on number two.
And rest o$ the manu$acturers have 2'H marker share.
Dominator Group
(D)
<8
+ndirect Competitor2:
0he indirect competitors $or !"# in this industry are *amsung, .rient, Mitsubishi,
*abro, Iobel and others ,hinese brands available in the market. 0he !"# has no big
threat $rom all these companies. But the *abro pioneer $or introducing the split air
conditioner in !akistan. Iow days the sabro has lost its market share to other
companies $or the business o$ *plit A,.
-+&K % NE! EN#-. $. P#EN#+AL C"PE#+#-&
?igh +n0e2tment2/
0hreat $or new entrants is high in this industry, partly due to the $act that this industry
is a lucrative industry and is very attractive $or $oreign companies. But in order to
really make a mark in this industry, you need to have strong investment and $unding.
&or this matter, !"# is at risk o$ the in$lux o$ $oreign investments in this sector.
%oreign $rand2/
&oreign brands like #+, *ony, *amsung, Mitsubishi and /aier etc. are a big threat $or
local brands. 0he -uality and brand image o$ $oreign brands is high as compared to
local brands. &oreign brands have captured the market o$ split A, and television. #+
and *ony are the market leader in television sector. #ocal brands canEt compete with
these companies in this sector.
#?E $A-GA+N+NG P!E- % #?E $*.E-&
,ompanyEs buyers are the people who ultimately purchase and consume its products.
I$ there are so many brands and products available in the market at di$$erent prices,
the bargaining power o$ the buyers will be high because they have many alternatives,
they can demand to lower the prices. .n the other hand i$ there are $ew brands or
companies in the market, then the buyers will be in a weak position to bargain. As a
result, the company can raise its prices and earn greater pro$its. I$ we see the !akistani
industry the bargaining power o$ the buyers is very high because a variety o$ products
are available in the market at di$$erent prices. *o the buyers can choose the product
according to his re-uirements.
Dominator Group
(D)
<9
#?E $A-GA+N+NG P!E- % #?E &*PPL+E-&:
*uppliers can be viewed as a threat when they are in $ew numbers in the market. In
that case, the suppliers are able to $orce up the price o$ inputs. 0he a$ter
e$$ects o$ that can result in the reduction in the -uality o$ inputs. I$ the
suppliers o$ !"# ,ompany are weak then company will $orce the suppliers
to reduce the prices o$ input and demand $or higher -uality. I$ the suppliers
are selling the products that have very $ew substitutes and are di$$erentiated
$rom others, then the suppliers are always in good bargaining position.
&*$&#+#*#E P-D*C#&
0here is no real substitute $or the products o$ this industry. @e$rigerators and deep
$ree2er have there own attributes. ,old stores can be substitutes $or these products,
but these substitutes are more costly and canEt be easily approached.
0he strengths, weaknesses, opportunities and threats o$ !"# are discussed
belowC
&trength2:
!"# has the $ollowing strengths.
Brand Iame
*trong %ealer Ietwork
Duality !roducts
Best *ales *ervices
Market leader in @A,
Iumber 2 in @e$rigerators in !akistan
*trong Management 0eam
Dominator Group
(D)
2A
%istribution o$ Authority
@esearch and %evelopment %epartment
&ree ,ustomer *ervice
$rand Name:
!"# has created a strong brand image in the mind o$ the customers
through higher -uality and low prices. 0he customers o$ !"# always pre$er its
home appliances like indow A,, split A, and re$rigerators, during the time o$
purchase. !"# is a popular company in !akistan and every one knows about the
!"# products and its brand name. 0hatEs why !"# is a market leader when it
comes to indow A,.
&trong Dealer Net7ork:
It is also the plus point $or !"# that it has developed a strong dealer
network in the market. 0he dealers always try to sell the !"# products to the
customers because, the company $or its products, gives them a high margin. 0he
management o$ !"# also provides more incentives to their dealers than their
competitors. %ealers are very conscious about the !"# products and always
guide the customer in buying the !"# products.
Auality Product2:
!"# is also in a strong position because it provides superior -uality
products to customers. *o it gives an edge to company over its competitors. %ue
to best -uality, guarantee o$ products o$ !"# is more than its competitors.
$e2t &ale2 &er0ice2:
!"# provides the a$ter sale service to customers which increases the
customers satis$action. 0he biggest strength o$ services department is that it
handles a complaint within 2( hours in any part o$ the country, that helps in
increasing the satis$action level o$ customers.
"arket leader in !-AC (!indo7 -oom Air Conditioner):
Dominator Group
(D)
2<
It is also strength o$ !"# that it is a market leader in @A,. ,ostumer
always gives pre$erence to !"# in window A, market because o$ low price, high
-uality and durability.
Num8er #7o in -efrigerator2 in Paki2tan:
A$ter the %awlance re$rigerators, !"# has the second position in the
re$rigerators market. !"# is gradually coming up in re$rigerator market and
increasing its market share. %ue to improved -uality, innovative $eatures and
good sales services !"# is becoming the $irst choice $or customers.
&trong "anagement #eam:
It is another plus point that !"# has a strong management. Its employees
are competent, e$$icient, skilled and knowledge. 0hey always cooperate with the
top management in achieving o$ goals that are assigned to them. "mployees are
well aware about the company ob1ectives and are committed to the development
o$ company.
Di2tri8ution of Authority:
0op management o$ !"# delegates the power to the subordinates $or
achieving the marketing ob1ectives in a speci$ied time period. *o every manager
has an authority to take decisions to achieve the goals o$ company. In this way
they save the time and react -uickly.
-e2earch and De0elopment Department:
!"# has a strong research and development department that is
continuously trying to develop new $eatures $or the products. @>% department
spends huge amount o$ money $or the development o$ new products.
%ree Cu2tomer &er0ice:
!"# provides $ree customer service $or one year to its customers. 0he
customers who buy the !"# products become brand loyal due to this $acility.
!eakne22e2 of PEL:
Dominator Group
(D)
22
#ike other companies !"# has some weaknesses. I$ !"# overcomes these
weaknesses then it can become a market leader in home appliances. !"# looses
some competitive edge in the $ollowing areasC
&inancial !roblems
#ack o$ advertisement
*ystem variations
#ack o$ !roduct range
#ess Utili2ation o$ capacity
%inancial pro8lem2:
*ometimes !"# $aces the $inancial problems because its stocks are so
much piled up in the stores that creates problem o$ cash $low because when the
stocks are not sold and the production is in process $or 2( hours a day then the
company $aces such problems.
Lack of ad0erti2ement:
It is a second ma1or weakness o$ !"# that it is not a vigorous advertiser.
.nly recently has !"# invested a considerable amount in advertisement, but
when we look at its competitors, !"# still has to do a lot in this sector.
&y2tem 0ariation2:
It is also the main weakness o$ !"# that there is a rapid change in polices
o$ selling the products. 0hat creates problems $or the selling team to sell the
products to the dealers because the top management re-uires urgent amount o$
money. 0hus the products are sometimes sold on hard cash that reduces the
prices o$ products that creates problems $or the management.
Lack of Product -ange:
!"# has introduced more products o$ consumer items but there are more
needs to develop new consumer items like !"# washing Machines, Jacuum
cleaner and other items.
Le22 utili5ation of capacity:
Dominator Group
(D)
2'
%ue to lack o$ $inance a company cannot utili2e all its resources on its
$ull capacity. It increases the cost o$ products per unit that decreases the pro$it
margin o$ each consumer item. *ometimes, the company cannot allocate the
resources according to the re-uirements o$ the production department, which
later on becomes a problem $or the complete utili2ation o$ resources.
pportunitie2 for PEL:
&or !"#, there are more opportunities $or expansion in business. &ollowing are
the opportunities $or the !"#.
"xploration o$ market in !akistan
Increase in product range
"xport opportunity
Increase in production capacit
E4ploration of market in Paki2tan:
!"# has the opportunity to explore the market in all over the !akistan.
"ven though !"# has introduced its products in many cities o$ !akistan but there
are so many places that are yet to be exploited.
+ncrea2e in Product -ange:
!"# can increase its product range that will be more pro$itable $or the
company. 0here are more needs to develop new consumer items like !"#
washing Machines, Jacuum cleaner and other items.
E4port opportunity:
!"# has also the opportunity to export their products in other
international countries like UA", *AU%I A@ABIA, and other Arabic and A$rican
countries.

+ncrea2e in production Line:
,ompany can also increase its production line at the maximum level that
will increase the e$$iciency o$ the employees and will also reduce the total cost.
Dominator Group
(D)
2(
#hreat2 for PEL:
&ollowing are the main threats $or the !"#C
*trong competition
,hinaEs product introduction in the market
!rice war
*low growth rate in !akistan
Instability o$ government
0ax department
orld 0rade .rgani2ation
&trong competition:
0here is very strong competition in the home appliance division. "very
company adopts di$$erent strategies $or selling o$ the products. It reduces the
pro$it margin o$ each company and increases the bargaining power o$ the buyers
who will demand higher -uality o$ products at lower cost.
ChinaB2 product:
,hinaEs products are another threat $or the !akistani companies because
these products are cheaper than the !akistani products. ,hina products stress the
indigenous companies to lower the -uality and prices that will not be pro$itable
in the long run.
Price 7ar:
As there is sti$$ competition in the home appliance market that will cause
the price war.
&lo7 gro7th rate in Paki2tan:
0here is also slow growth rate o$ home appliance in !akistan that will
increase the stocks o$ the company. Although, this industry is in the growth
phase, but the speed o$ the growth is very slow.
+n2ta8ility of Go0ernment:
0he rapid changes in governments will become a threat $or the companies
because every government adopts new policies $or the industries. *o it
Dominator Group
(D)
2)
increasesthe uncertainty $or the investors who want to invest heavy amounts in
their new pro1ects.
#a4 department:
0ax department is another ma1or threat $or the company that will restrain
the business expansion. 0here is a most complicated tax procedure operating in
the country that creates hurdle in the production and smooth $unctioning o$
di$$erent companies in !akistan.
!orld trade organi5ation:
orld trade organi2ation will give the permission in 2AA) to each company o$
home appliance to export their products a$ter paying less duties or duty $ree products.
0hat will increase the pressures $or the indigenous companies to reduce the prices and
increase the -uality. It will increase the competition among the $oreign companies and
indigenous companies.
0he ob1ectives and mission $or which the company is established are as $ollowingC
0o carry on the business or businesses o$ manu$acturing,
selling, installing, maintaining designing and dealing in all kinds o$
electrical e-uipment.
0o carry on any business whether manu$acturing or
otherwise which maybe $ound convenient to undertake in connection with
or in addition to any o$ these ob1ectives mentioned above.
0o do all such things that are incidental $or the attainment
o$ the above ob1ectives or any o$ them.
Dominator Group
(D)
24
0o produce high -uality and standard products.
0o produce e-uipment to be used in numerous pro1ects o$
national importance.
0o secure a high share = -uota o$ A!%AEs demand $or
power products.
0o produce skilled workers and technicians through its
apprenticeship schemes and training programs $or engineers and
technician
B,+ stands $or Boston consulting group. It is a port$olio planning method that
evaluates the companyEs strategic business unit .Using this model an organi2ation
classi$ies each o$ its separate business units :*BU; according to two $actorsC
"arket 2hare relati0e to competition and gro7th rate of the indu2try in
7hich &$* operate2
hen these $actors are divided into high and low categories, a 2 x 2 grid is
created as displayed in $ollowing $igureC
Dominator Group
(D)
25
&#A-:
*tar is a business unit that has large market share in $ast growing industry. *uch unit
re-uires more investment to generate more cash. I$ due to more investment it will
become success$ul and become cash cow and it will reach at maturity stage. &or star
product the strategy is called harvest
-efrigerator o$ !"# is the product having high market share and high annual
growth rate.
Ca2h Co7:
It is the business unit sometimes known as problem child. It has a large market share
and low annual growth. "ach cash cow re-uires little investment and it generates
more cash that can be used $or investment purpose in other business units/ &or cash
cow the strategy is called /.#%, you must preserve market
&plit air conditioner2 is the product o$ !"# having high market share and low
annual growth rate.
Aue2tion "ark:
Dominator Group
(D)
28
Aue2tion "ark
&tar
.
It is the business unit that has a low market share and high annual growth. 0hese
business unit re-uires resources to grow market share 8ut i$ they succeeded that will
become *0A@. &or -uestion mark the strategy is called BUI#%, you try to make up
the market share.
!a2hing machine and micro7a0e o0en are the products o$ !"# having low
market share but high annual growth
Dog:
%og is the business unit that has small market share as well as low annual market
growth rate. A company normally would be unwise to invest substantial $unds in
*BUs in this category. Marketing strategies $or dogs are intended to maximi2e any
potential pro$its by minimi2ing expenditures or to promote a di$$erential advantage to
build market shareAnd the company can diverts or li-uidate the dog product
Deep free5er is the product o$ !"# having low market share plus low annual
growth share.
&#-A#EG+E& % PEL A& "A-KE# C?ALLANGE-
In competitive environment challengers strategies are very signi$icant to survive in
the market. &irms in this category can adopt one o$ the $ollowing strategiesC0he leader
Dominator Group
(D)
29
Ca2h Co7

Dog
Deep free5er o$ !"# has
low market share in low
market growth rate. *o it
regarded as a dog. *o
company should drop this
product.
is attacked but it is very risky and high payo$$.,ompany can attack unprogressive and
under $inanced $irms, it is less risky and less payo$$It can also attack on small local
and regional $irms, it is neither risky nor high payo$$
Choo2ing A General attack 2trategie2:
%rontal attack:
0he attacker matches its opponent price, product, advertisement and distribution. 0he
principle o$ $orce says that side with greater manpower :resources; will win
%lank Attack:
0he attacker can attack along two dimensionsC
*egmental.
+eographical
#echnological leap fogging:

,hallenger patiently researches and develops the next technology then launches its
attack
Guerrilla !arfare:
It consists o$ small but continuous attacks to harass and demorali2e the opponents.
Encirclement attack:
It involves launching grand o$$enses on several $ronts attack on every $eature o$
opponents products
As $ar as !"# is concerned, it uses technological leap $ogging strategy to attack. !"#
is launching products having several innovative $eatures to di$$erentiate its product
$rom competitors
!ater di2pen2er refrigerator is the product having innovative
$eature o$ getting cool water without opening re$rigerator
(= &erie2 refrigerator is the product having di$$erential $eature
o$ light bulb in $ree2er
!"# +enset Aircon !ower "lectric generator is the product having $ollowing
di$$erential $eaturesC
!er$ormance capable o$ running $ollowing items continuously $or <A hours.
.ne <.) ton split
.ne television
*ix tube lights
.ne computer
.ne $ridge
&ive $ans
.ne deep $ree2er
Dominator Group
(D)
'A
0he main compatitve advantage o$ !"# is it is pioneer company o$ !AFI*0AI.
!"# companies engaged in same business o$ /ome Appliances. /owever, !"# is also
making !ower !roducts like "nergy Meters, 0rans$ormers, *witch +ears etc.
!"# is pioneer o$ eletrical appliances in !akistan as it started its activities in <9)4.
!"# was taken over by *aigol +roup o$ ,ompanies. !"# is awarded *uperBrands
!akistan 2AA53A8. 0he Brand Ambessdor o$ !"# is /adi-a Fayani which is $amous
singer o$ !akistan.
*egment marketing o$$ers several bene$its over mass marketing. 0he company can
more easily select the best distribution and communication channels and it will also
have a clear picture o$ its competitors.Market segmentation re$ers to the di$$erent
areas o$ the population that companies can aim their products towards. 0he market
segment that !"# has chosen to aim is the -uality conscious people.
Dominator Group
(D)
&egmentation
Geographic Demographic P2ychographic $eha0ioral
'<
G()*+,-./0 S(*1(23,3/)2:
!"# is doing mass market which is not limited to one county but all over the world.
0he main target o$ !"# is !akistani market.In !akistan,!"# is available at every city
because its very $amous and good product o$ market.
D(1)*+,-./0 S(*1(23,3/)2:
!"# divide its market on the basis o$ $ollowing characteristics o$ population
Age group:
"arlier !"# used to segments its market among people age ranges $rom ')33333
()years.But Iow !"# $ocus between the age group ranges $rom 2)3333') years.
Gender group:
&or the segmentation, the company is recently $ocusing on young graduate girls and
the latest ad o$ !"# reveals the $act in which $amous singer ?adi1a is representing
young college girl.
P450.)*+,-./0 S(*1(23,3/)2:
+ncome group:
!"# is o$$ering its several products to di$$erent income groups o$ society
In case o$ +enerators, company $ocuses on elite class.
In case o$ re$rigerators, split air conditioners, washing
machines, deep $ree2er.
0elevisions ,ompany $ocus on middle class.
In case o$ Microwave oven, the company $ocuses on elite and
middle class.
B(.,6/)+,7 S(*1(23,3/)2:
e provide a -uality product $or our customers. It is purely base on local demands
and needs, and we sure that our product will be appreciated by that people who are
-uality conscious.
Dominator Group
(D)
'2
It is
the segment $or which the seller designs particular marketing mix.
0arget market *trategiesC
&ollowing are the target market strategiesC
Aggregation strategy
*ingle segment strategy
Multiple segment strategies
Aggregation 2trategie2 C
In this strategy total market is treated as a single segment and single market mix is
developed to reach the customers in the entire Market.0he company o$$ers a single
marketing mix.
!osition is the way a $irmEs product, brand or organi2ation is viewed relative to the
competition by current and prospective customer.
!ositioning is a $irmEs use o$ all the elements at its disposal to create and maintain in
the minds o$ a target market particular image relative products.
!"# has di$$erent positioning levels $or di$$erent products,
In case o$ re$rigerators the company is challenger o$ %A#AI,".
In case o$ air conditioners company is challenger $or AJ"* and MI0*UBI*/I.
In case o$ televisions company is challenger o$ #+ and some other companies.
!"# doing the mass marketing and using only one marketing mix $or the complete
!akistani market.
Dominator Group
(D)
''
C
!roduct mix is a set o$ all products that are o$$ered $or sale by a company. !roduct
mix consists o$ both breadth and depth.
$-EAD#?:
Breadth is a measured by the total number o$ product line o$$ered by a company.
DEP#?:
%epth is the variety o$ si2es, colors and models o$$ered within each product line
Dominator Group
(D)
Promotion
Product Product
is
%heart&
Product Product
is
%heart&
Place (Distri'ution)
Price
'(
P-#%L+ % PEL
!"# divides its port$olio in two divisions
Appliances division.
!ower division.
P-#%L+ % APPL+ANCE& D+,+&+N
&ollowing are the products o$ appliances divisionC
Air conditioners
@e$rigerator
0elevision
Microwave .ven
ashing machine
+enerators
$-EAD#? DEP#?
REFRIGERATORS: MODEL SI8E
9/ P-E"+E- &E-+E&:

PC >'9<C 9CCft
PC >'9(C 9DCft
PC >'9; 9(Cft

Dominator Group
(D)
')
PC >C'' 9'Cft
PC >E'' <Cft
>/ C-.&#AL &E-+E&C

PC >'9> 9'Cft
PC >'9' <Cft
PC >'': ;Cft

E/ (=&E-+E&:
PC (D'' 9>Cft
PC (E'' 99Cft
PC (>'' 9'Cft
D/ "+N+=&E-+E&:

Dominator Group
(D)
'4
P"- 99'=&
P"- 99
P"-=999
(D&)
MICRO#AVES: MODEL SI8E
P" 9'C> >C%
#G (&il0er)

P" >E 9/CC%
"anual (&il0er;
Dominator Group
(D)
'5
P" >' 9C%
#ouch (!hite)
P" >E >C%
#G& (&il0er)
#ASHING MACHINES: : MODEL SI8E

"agic Clean 9'K,
(P!"=;;'')
"agic Clean CK,
P!" 'C9'
AIR CONDITIONERS: MODEL SI8E
Dominator Group
(D)
'8

&il0er Line 969/C
(A$) 3 >ton
?igh ,ita 9/9/C
(?,;) 3 >#on

!AC 9/C#on
(9:K)
Floor Standing Air
Conditioners
#ATER DISPENSORS: MODEL
SI8E

PL& (:9 &L E('4E:'49'EC
Dominator Group
(D)
'9
(&il0er 3 !hite)

PL& (<9 &L E<C4E:C49'>C
(&il0er)

P-#%L+ % P!E- D+,+&+N
0hese are $ollowing products o$ power division.
$-EAD#? DEP#?
TRANSFORMER C 2) FJA
)A FJA
<AA FJA
<2)A FJA
ENERY METERC ,L#AGE >>'=>D',
,U@@"I0
:I.MIIA#; <A,
2A,(AA
S#ITCH GEARS C ,U@@"I0
:MAKIMUM; (A, 4A,
8A,<AAA
Dominator Group
(D)
(A
GENERATOR: "odel No/
Capacity
!+)A(A% ).2FJA
FEATURES OF PRODUCT LINE
Air Conditioner2:
!"# window3type air conditioners were introduced in <98< in technical collaboration
with +eneral ,orporation o$ ?apan. "ver since their launch, !"# air conditioners have
a leading position in the market. !"# air conditioners cooling per$ormance has been
tested and approved by ,opeland and I0* U*A. ith the shi$t o$ users pre$erence
$rom window type to split type air conditioners, !"# has started manu$acturing split
type air conditioners
-efrigerator2C
0he manu$acturing o$ re$rigerators started in <984385 in technical collaboration with
M=s IA@3*I#0A# o$ Italy. #ike the air conditioner, !"# re$rigerators are also in great
demand. 0oday, !"# ,rystal has '8H o$ total market share. Its cooling per$ormance is
tested and approved by %an$oss, +ermany and its manu$acturing $acility is I*. 9AA<
certi$ied.
Deep free5er2C
!"# deep $ree2ers were introduced in <985 in technical collaboration with M=s
Ariston o$ Italy. %ue to several reasons the production o$ deep $ree2ers was stopped
but now company is restarting its production again.
"icro7a0e 0en:
!"# the trust$ul company name in home appliances all over the country, now
introduced all new models o$ L!"# !ower aveL Microwave .vens. Iow !"#
customers can have $our models o$ !"# !ower ave in which they can en1oy the
grilling $eature as well. !"# Microwave .vens are available in di$$erent si2es, inner
cavities :steel > painted; and $eatures.
Dominator Group
(D)
(<
!a2hing "achine:
!"# introduced washing machine in 2AA4 $irst time and it got appreciative response
$rom customers, Iow it is being produced by the company on large scale and due to
its improved -uality its sales volume is increasing.
Generator2:
+enerator is another product o$ !"# that is used to generate electricity. It is very
$amous product in elite class. It has several $eatures as sel$ start, no noise, digital
display panel, dual exhaust system :environment $riendly;, special air cooling system,
continuous <A hours running at ' FJ.
P-D*C# L+%E C.CLE
A product li$e cycle consists o$ aggregate demand over an expected period o$ time $or
all brand comprising a generic product category. A li$e cycle can be $oraged by
plotting aggregate sales volume $or a product category over time usually years
&tage2 of product life cycle:
Management must be able to recogni2e what part o$ li$e cycle its product is in at any
given time. 0he completive environment and marketing strategies that should be used
ordinarily depends on the particular li$e cycle stage
0here are $our stages o$ product li$e cycle and explanation o$ each is given below
Dominator Group
(D)
Tim
e
Product
Develo
p-
ment
Introducti
on
Proft
s
Sale
s
Growt
h
Maturit
y
Declin
e
Losses/
Investments
(!
Sales
and
Profts
(!
(2
+ntroduction:
0his stage some times known as pioneering stage in which a product is
launched into the market in a $ull scale marketing program it has gone through
product development, including idea generation, idea screening, prototype and
market tests. &or new products normally there is very little direct competition.
+"I"@A0.@* are on introduction stage.
Gro7th:
+rowth stage also called market acceptance stage.
In this stage sales volume and pro$its rises and
competitors enter the market. At the end o$ growth
stage , pro$it starts to decline.
ater %ispensers are on growth stage.
"aturity:
%uring Maturity stage, sales continuous to increase but
at decreasing rate. hen sales level o$$, pro$its o$ both
producer and middlemen decline. 0he primary reason is
intense price competition
@e$rigerators o$ !"# on the maturity stage.
Decline:
0his stage is inevitable. In this stage pro$it and sales volume o$ the product both
decrease rapidly and $inally its li$e comes to an end.
Longe2t life cycle:
Dominator Group
(D)
('
As $ar as !"# is concerned, the longest product li$e cycle is o$ crystal classics
re$rigerators having three years duration.
&horte2t life cycle:
#i$e cycle o$ crystal classic 2AA9 re$rigerator is the shortest among the port$olios o$
!"# appliances.
!rice is a strong element in the marketing mix. It has a direct impact on the customer,
business. 0o the consumer, the price is a ma1or indicator o$ the -uality o$ good and an
important $actor in making decision about itEs purchase
In deciding the price the business management must consider the kind o$ competition
in the market $or the good, the elasticity o$ demand $or product, its cost o$ production
etc
As $ar as !"# organi2ation is concerned, sets its prices o$ product line regarding the
competition in the market.
!rices o$ product line varies $rom product to product, some o$ its productEs prices are
set on -uality base
!"# organi2ation is very well aware o$ the limited buying power o$ the average
population o$ !akistan so to upli$ting their living standard > trying to meet their
expectations regarding necessities o$ home appliances. *o company tries to $ocus on
this portion o$ society, while setting the prices.
+nternal co2t2 include in price2:
#' -a7 "aterial
>= La8or Charge2
E= %actory 0erhead2
D= Ad0erti2ement Co2t
Dominator Group
(D)
((
C= Go0ernmental Duty
(= E4ci2e Duty
;= CompanyF2 Profit "argin
PEL PRICE LIST
M)9(7 P+/0(4
(Rs)
REFRIGERATOR
&L+" L+NE
>'':=,C" 9CC''
>'9'=,C" 9(C''
>'9>=,C" 9<'''
>'':=&#A- PL*& 9('''
>'9'=&#A- PL*& 9;'''
>E''=&#A- PL*& 9;C''
>C''=&#A- PL*& 9<C''
>E''=P-E"+E- 9;:''
>C''=P-E"+E- 9<:''
!?+#E $D.
>'9D'==Cry2tal Cla22ic >'C''
>'9DC=Cry2tal Cla22ic >9'''
>'9(C=Cry2tal Cla22ic >>C''
>'9;=Cry2tal Cla22ic >CC''
>'9D'=Premier >9'''
>'9DC=Premier >9E''
>'9(C=Premier >E'''
>'9;=Premier >C'''
( &E-+E&
Dominator Group
(D)
()
(>'' >''''
(E'' >'C''
(D'' >9'''
MICRO#AVE OVEN
P"=>' "anual D>''
P"=>' #ouch D;''
P"=>E " D:''
P"=>E #G C<''
P"=>E #G& (E''
P"=E( #G ;'''
P"'=E(#G& ;D''
P"'=C> ;D''
#ASHING MACHINE
P!"=C'< CC''
P!"=C9' C;''
P!"=;C'' ;C''
SPLIT AIR CONDITIONER
9 #N 9:D''
9/C #N >C:''
> #N E(;''
GENERATORS
PG C'D'=D ;D'''
Dominator Group
(D)
(4
!romotion is an essential $or increasing the demand o$ the product. !romotion
includes advertising, personal selling and sales promotion. 0he seller in$orms the
customers through news papers, television and posters about the product available in
the market.
PRMOTIONAL STRATEGIES OF PEL:
P*&? &#-A#EG.:
It is promotion program primarily aimed at dealers in which company $ocuses to sell
the product. In past !"# used this strategy to increase their sales volume by giving
more and more incentive to the dealers
P*LL &#-A#EG.:
It is another promotional program primarily aimed at $inal consumer. Iow a days,
!"# is using !U## strategy by improving product -uality
&or exampleC !"# is using the imported %AI&.** compressors in its appliances.
METHODS OF PROMOTION:
An organi2ation adopts one or more o$ the $ollowing methods which are very
common now a day in upli$ting its per$ormanceC
Ad0erti2ing
Per2onal 2elling
Dominator Group
(D)
(5
&ale2 promotion
Pu8lic relation2
P-"#NAL $*DGE#:
PEL 2pend2 EG of 2ale2 on promotion/
AD,E-#+&+NG:
Advertising is non personal communication paid $or by a clearly identi$ied sponsor
promoting ideas, organi2ations or products. 0he most $amiliar outlets $or ads are the
broadcast and print media. C
0he company highly believed in advertising. 0he company is expanding a lot o$
money on di$$erent advertising media which areC
= #ele0i2ion
= ?ording
= Neon &ign
= &ticker2
= $anner2
= Point f &ale
= Calendar2
= !all
= Clock2
= $rochure2
= Key Chain
= $ill8oard2
rgani5ing ad0erti2ement:
A $irm can manage its advertising program through $ollowing waysC
By developing an internal advertising department
By using an outside agency
By using a combination o$ above both
Dominator Group
(D)
(8
AD,E-#+&+NG #?-*G? P-+N# "ED+A:
PEL is conducting its advertising through internal advertising department. It is
per$ormed by publishing ads in hot selling maga2ines.
AD,E-#+&+NG #?-*G? ELEC#-N+C "ED+A:
PEL is conducting its advertising campaigns through advertisement several outside
agencies. !"# sister concern H-ed CommunicationI is the main advertising agency
used $or the purpose o$ making ads according to changing trends o$ market and
considering ethical issues. #atest ad o$ !"# is designed by this agency by $ocusing on
a college girl and its re-uirements $rom technology and !"# is providing the
appliances which is $ul$illing theses re-uirement.
Ad0erti2ing duration C
&or re$rigerators and air conditionersC from "arch to June
Dominator Group
(D)
(9
&or oven and washing machineC from No0em8er to "arch
.
&ALE& P-"#+N:
*ales promotions sponsor3$ounded, demand3stimulation activity designed to
supplement advertising and $acilitate personal selling.
!"# uses out door activitiesC
"xhibitions
@oad shows
!romotion schemes etc.
P*$L+C
-ELA#+N&:
!ublic relations encompass an wide verity o$ communication e$$ort to contribute to
generally $avorable attitude and opinions towards an organi2ations and its products.
!"# also engaged in public relations activities 1ust to create a so$t image in the hearts
people.
&C+E#AL "A-KE#+NG:
Dominator Group
(D)
)A
&irm that su$$iciently extents the breadth and commitment dimensions o$ its
marketing goals to $ul$ill its social responsibility are practicing what has become
known as the societal marketing.
In these days !"# is giving donations $or rehabilitation o$ earth-uake a$$ected areas.
0he company has donated several necessities $or the help o$ earth-uake a$$ected
people.
!"# uses to collect 2akat $unds on the behal$ o$ several charity institution as *hokat
Fhanam hospital
+n2tallment %acility:

!"# gives installment $aculty to all government employees, all o$ the account holders
o$ Banks Al$lah #imited and bank o$ !un1ab
0his element o$ marketing is concerned with all those activities with are related to
move the product or service $rom seller to buyer. !"# uses place strategy which
ensures that product is available to consumer at the right time when they are needed
:time utility;
At the place where they are demanded :place utility; in the $orm or shape they are
re-uired :$orm utility; and the ownership o$ goods is trans$erred with less $inancial
risk :possession utility;
A product reaches customer through a channel o$ distribution. 0his channel might be
short or much complex involving many kinds o$ middlemen but !"# uses short
channel o$ distribution to minimi2e the expenses and ensure timely supply o$ goods to
end user
D+&#-+$*#+N C-+#E-+A:
Dominator Group
(D)
)<
!"# has the head o$$ice in #ahore and it also has 22 sub3o$$ices in di$$erent cities o$
!akistan and they have di$$erent sales manager in each city. "very manager is
responsible to maintain strict control over the market they are assigned.
0he company estimates its sales volume by the past sales made by dealers and
expected $uture demand o$ authori2ed dealers
0he volume o$ productions which is to be produced is also calculated by the same
methods that is the sales target given to the dealers $or the year
0he ,ompany imports raw material $or their products. 0hey believe that the imported
raw material is o$ superior -uality. 0hey are importing raw material $rom di$$erent
countries which areC
=Germany
=Japan
0he parts which are importedC
9= Compre22or
>= Copper Pipe
E= +n2ulation Chemical2
D= Cry2tal 2heet
C= #hermo2tat
(= "onogram
; $ul8
0he parts which are locally manu$acturedC
9= Ga2 Kit
>= ?andle
E= Kno82
D= !heel
C= !rack2 etc/
DEALE-&?+P P-CED*-E:
!"# bases on dealers $or its sales and ultimate production. 0hat is why they have a
very strict system o$ giving dealership and a very e$$icient procedure o$ allotting
Dominator Group
(D)
)2
target to each and every dealer. 0he company makes a contract with every dealer $or
the period o$ one or more years depends upon the relation with company and
e$$orts put by the dealers in speci$ic territories.
&ollowing are the considerations which company looks $or while allotting
dealership.
Con2ideration2 for allotment of dealer2hip:
0hese points are specially considered while allotting dealershipC
%+NANC+AL $ACKG-*ND&K-E&*-CE:
&inancial background is the main point o$ consideration $or allotting
dealership !"# does not allow credit $acility to its dealers they have to
pay advance payment to get delivery o$ goods.
LCA#+N % *#LE#:
Another ma1or consideration in getting the dealership is location o$
outlets. 0he selling point should in the existing market place and it
should be easily accessible by customers
E)PE-+ENCE AND KN!LEDGE % DEALE-:
0he dealer should have a $air assessment and knowledge about the
particular territory. /e should be conscious o$ his good points in
persuading the customers to purchase the goods
DEALE-& A##+#*DE:
0he attitude o$ the dealer should be polite to the customers so that he may
convince them.
Dominator Group
(D)
)'
GD !+LL:
,ompany pre$ers the dealers having well repute in the market and dealers are
very good in the eyes o$ customers
In this modern word, it is very hard to survive in the market due to swear competition
between the companies. "very existing product in the market has its substitute or
similar product.
6,ompetitors are the companies that satis$y the same customer needs and wants.7
0o explain the competition we can classi$y the competitors in two ways which are
given belowC
Direct competitor2
+ndirect competitor2
D+-EC# C"PE#+#-&
0he direct competitors o$ !"# are %awlance, aves, #+, and /aier etc. 0he
%awlance is market leader in the re$rigerator and !"# is still on second number. But
in window room air conditioner :@A,; the !"# is market leader
-E%-+GE-A#-&:
0otal market sale o$ re$rigerator in 2AA4 is 292(9A) units. #ast year sale was
2A9<559 units. 0hese $igures show 'AH market growth. But this is not the
exact $igure o$ growth rate it varies $rom year to year.
%A#AI," is a market leader in re$rigerator with (4H share.
PEL ha2 E<G market 2hare
aves has <AH market share.
4H shares are others
!+ND! A+- CND+#+NE-&:
Dominator Group
(D)
)(
!"# is a market leader with a market share o$ about 4AH in local
manu$acturing industry. And overall has ')H market shares $or this product.
#+ has about '2H market share and stands on number two.And rest o$ the
manu$acturers have 2'H marker share.
&PL+# A+- CND+#+NE-&:
0he main competitor o$ !"# in *plit air conditioner is %A#AI,". .ther
competitors are MI0*UBI*/I and /AI"@
"+C-!A,E ,EN:
In case o$ Microwave .ven %A#AI," is the main competitor o$ !"#.
But the company claims to be the leader in this product line.
+ND+-EC# C"PE#+#-&
0he indirect competitors $or !"# in this industry are *amsung, .rient, Mitsubishi, *abro,
Iobel and others ,hinese brands available in the market. 0he !"# has no big threat $rom all
these companies. But the *abro pioneer $or introducing the split air conditioner in !akistan.
C"PE#+#+N &#-A#EG+E&
C"PE#+#+,E P&+#+N:
According to AU@0/"@ %. #I00#" a company will occupy one o$ the $ollowing
competitive position strategiesC
Dominants(
At this position a $irm controls the behavior o$ other competitor and has a
wide choice o$ strategic option.
)tron*(
At this, a $irm can take independent action without endangering its long3term
position and can maintain its long3term position regardless o$ the competitorEs
action.
"avora'le(
0his $irm has an exploitable strength to improve it position.
Dominator Group
(D)
))
+ena'le(
0his $irm is per$orming at a satis$actory level to warrant continuing in
business.
,ea-(
At this position, a $irm has unsatis$actory per$ormance and an opportunity to
improvement.
!on.via'le(
At this position, a $irm has unsatis$actory per$ormance with no opportunity to
improvement.
PEL occupie2 the 2trong po2ition in the market 8ecau2e6 it ha2 0ery good
market 2hare of E<G/ PEL i2 the market C?ALLANGE-/
C"PE-+&+N $E#!EEN DA!LANCE AND PEL
DA!LANCE PEL
+NN,A#+N:
0he innovation process o$ 0he innovation process o$ the !"# is high but
%awlance is very high and not like the %awlance their position in the
Duick. Market.is good.
"A-KE# LEADE-:
!"# is also the market leader
%awlence is the market leader but it comes a$ter the %awlance and doing
and still maintains its $irst a very good 1ob in the market.
position in the market
P-D*C# -ANGE C
!roduct range o$ the !"# is nearly <A to
%awlance have a very good <) which is also showing a good ratio o$
product range all !roduct range the products o$ the !"# have also very good
Dominator Group
(D)
)4
is nearly 2Ato2(. position in the market
All the products o$ the
%awlance are doing very good
1ob in the market
In 2AA43A5, your ,ompany has maintained the growth pattern o$ last ) years. +ross
sales at @s. <'.A5 billion and !ro$it a$ter tax o$ @s. )82 million show an increase o$
<8.(2H and '<.45H respectively. *ummary o$ key $inancial results is given belowC
%inancial -e2ult2 (-2/ in
"illion)
>''(=
';
>''C=
'(
+ross *ales <',A55 <<,A(2
!ro$it be$ore tax 5A5 )<4
!ro$it a$ter tax )82 ((2
"arnings per share :Basic; 3
@upees
4.85 ).A(
"arnings per share :%iluted; 3
@upees
4.4) (.82
Graph = Gro22 &ale2
Dominator Group
(D)
)5
Dominator Group
(D)
)8
PEL was <4
th
,ompany in !akistan which got I*. 9AA2 ,erti$ication in <995, since
then !"# Management is applying this +nternational &tandard Practice2 $or
"$$ectively Managing Duality o$ !roducts and *ervices that ,ompany .$$ers. 0he
International *tandard !ractices in PEL have been Upgraded as per the @evised I*.
9AA< *tandards and its *cope o$ Application is expanding ever since and 0op
Management is ,ommitted to make !"# a #otal Auality "anagement :#A";
,ompany.
In this ,ompany Duality is the *ub1ect o$ Management at all #evels. e $ocus on
continuous improvement in our *ystems thus establishing Good "anagement
Practice2 that ensure !roduct and *ervices *tandards, we are committed to and
making continuous e$$orts in developing and strengthening our internal and external
customers and suppliers, employees training and development and their participation
are the KE. force2 which are Increasing the .rgani2ationGs ,apabilities thus making
it more competiti0e and $ast growing ,ompany.
And thus going $or &tate=of=the=art production $acility re$lects management Jision
and commitment for Auality. /aving around &i$ty years o$ Manu$acturing
experience with a cooperative and dedicated employees and now coupled with
efficiency monitoring proce22e2 and Data Analy2i2 enable management to take
!reventive Actions be$ore things really go wrong. "limination o$ waste$ul activities,
practices, processes, norms and behavior are the top managementGs priorities that need
to be managed so that the philosophy o$ LE- DE%EC# can be taken on board.
Benchmarking with Iational and International repute .rgani2ations will be in our
road to manu$acturing excellence to prove !"# as a !orld Cla22 "anufacturer.
%uture utlook:
0he economy is expected to per$orm well in the next year however it is
exposed to certain challenges like current account de$icit, lower exports,
increased competition in the international market and lack o$ technological
advancement as compared to competing nations. It is still hoped that national
economy will continue to grow and rising prosperity will bring expanding
opportunities $or the "ngineering Industry and $or your ,ompany.
0he company will continue to $ocus on cost e$$ectiveness, -uality standards and best
a$ter sales services to our valued customers. e expect to go $arther, $aster and higher
Dominator Group
(D)
)9
than we have ever been in serving the interests o$ our customers, shareholders and
employees.
Dominator Group
(D)
4A

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STUDY OF MARKETING SYSTEM

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